Japan rapidly adopted western technological influences to be a center of development and creativity near the end of the 19th Century. Following its defeat in World War II, Japan experienced great economic expansion and rapidly became the most successful exporter in the world. To this day, Japan is still one of the leading industrial powers in the world, making Japan an outstanding place for international businesses.
Here are some of the advantages of setting up an office in Japan:
• Gateway to the Asian marketplace Japan does not only offer a willing audience of over 127 million citizens, in addition, but it also provides an exciting yet secure business marketplace open to foreign and trade investment. Japan’s marketplace is internationally competitive, particularly in the areas of IT, health care, environment and automotive. Japan’s enormous market also boasts an established base of the top businesses in the world. Setting up an office in Japan also has the additional advantage of working in the showroom for the remainder of Asia.
• Highly knowledgeable workforce There exist over 600 universities in Japan. For this reason, there exists a workplace where education and knowledge is prized as an important quality. So, as a new entrant into the Japanese market, getting qualified hands for establishment wouldn’t be a problem. When establishing an office in Japan, you will most likely come across high levels of expertise and accurate attention to details.
• Discerning consumers/customers A wealthy and highly educated Japanese population leads to discerning consumers. The level of household expenses, which is one of the highest in developed countries, exemplifies how Japan can be an excellent testing ground for new products. So, if you’re bringing in a new product with your establishment, you have chosen a good market for it.
Few factors to consider when setting up an office in Japan
1. Be sure to have sufficient capital: In Japan, individuals oftentimes get carried away by the truth that the minimal sum of capital required to set up a business is one yen, but you’re going to be needing a lot more than that for your setup. You are going to want several thousand yen only for taxes and authorities enrollments, and several more for the many professionals you hire. Moreover, for your established office to truly take off, it might take some time as a result of various factors. Make sure that you plan accordingly.
2. Culture: Be sure to you understand the cultural aspect of setting up an office in Japan. You should take into account the undeniable fact that as an outsider, you might have certain exceptional insights, but you might also not completely understand what will and won’t work in the marketplace. Stay open to guidance and local views, and always make an effort to learn about Japanese business culture.
3. Tax: Tax efficiency is a factor to take into consideration when determining whether setting up an office is the best way to get established in Japan, where corporate tax rates are around 32.11%